Many companies are hip-dip in a talent crunch, struggling to acquire and retain the talent that they need to survive in a challenging economic climate.
In fact, talent management is the top priority for today’s CEO, according to a recent PricewaterhouseCoopers study. This is being fueled by a talent shortage that’s plaguing 49% of US employers who say they’re challenged to fill mission-critical positions in their organizations
And human resources departments and managers are being blamed – whether justified or not – for these challenges. They’re seen as lagging behind other parts of a company when it comes to using data analysis to get accurate data and metrics to make important business decisions.
“Today’s human capital functions have failed to keep pace with other business leaders in using analytics to make critical decisions,” says Rebecca Ray, senior vice president, human capital at the Conference Board, in a statement. “It is imperative for human capital departments to create effective analytics processes that focus on making decisions in real time, particularly those which are predictive in nature, all of which closely align to current and future business plans.”
It’s critical for HR departments to embrace data analysis and predictive analytics to move beyond analyzing what has happened to predicting what will happen operationally so they can more effectively support the overarching strategies of their companies.
The report suggests that companies identify key problems or opportunities facing the business and build hypotheses about causes or impacts of these issues. While developing data analysis approaches, companies also should focus on clearly communicating desired business outcomes and securing stakeholder buy in, according to the report.
The HR talent issue is becoming so critical in some companies it’s affecting the bottom line, according to a recent survey of 313 CEOs, CFOs and HR executives.
In fact, 43% of respondents say that because of inadequacies in human capital management they’ve been unable to achieve key financial targets for some 18 months. In addition, 40% of respondents report a reduction in the abilities of their companies to innovate, while 39% say they’ve been unable to achieve forecast growth.
To reach their goals, executives have to focus on getting the right information and translating it into actionable insight, according to the report.
Only 12% of the CEOs report that they have confidence in the quality of the human capital data they receive, the report notes. Additionally, 38% of HR executives report that getting accurate data and metrics on human capital costs, productivity and and ROI is challenging.
“There is no easy answer to this . . . ,” according to a Business Finance magazine article on the study. “In many cases, it is a matter of bringing the organization’s best minds together to identify the data required and to develop the right technology to deliver that data.”